IS IT A FRAUDULENT TRANSFER TO CONVERT NON-EXEMPT ASSETS TO HOMESTEAD?
In Havoco of America, Ltd. v. Hill, 790 So.2d 1018 (Fla. 2001), the Florida Supreme Court found, by a 6 to 1 decision, that the Florida homestead exemption trumps and preempts the fraudulent transfer statute. In this case, Mr. Hill had a $15,000,000 judgment imposed against him for fraud, conspiracy, and breach of fiduciary duty, among other things. The judgment was entered on December 19, 1990, and the judgment became enforceable January 2, 1991. Mr. Hill moved to Florida by purchasing a home in Destin on December 30, 1990, although he was a long time resident of Tennessee. The court held that the creditor could not levy upon Mr. Hills home even though he may have bought it with the intent to place the $650,000 purchase price beyond the reach of the creditor. The court reviewed the case of Tramel v. Stewart, 1997, where drug dealers arrested for selling marijuana and having sophisticated growing operations on their home, which was apparently used as an instrumentality of the drug oper
